NIKE, Inc. stock research
FY2026 Q3
NIKE (NKE) Gross Margin — Quarter Ended Feb 28, 2026
Revenue in the current quarter was lower than the preceding quarter and unchanged from the same quarter last year. Gross profit and gross margin both weakened sequentially and year-over-year, as cost of revenue decreased less sharply than revenue on a sequential basis and was higher than the year-ago level.
Gross margin takeaway
Quarter ended Feb 28, 2026 · FY2026 Q3
Revenue in the current quarter was lower than the preceding quarter and unchanged from the same quarter last year. Gross profit and gross margin both weakened sequentially and year-over-year, as cost of revenue decreased less sharply than revenue on a sequential basis and was higher than the year-ago level.
- The gross margin decline was primarily driven by the relationship between revenue and cost of revenue: sequentially, revenue fell while cost of revenue decreased by a smaller proportion; year-over-year, revenue was stable but cost of revenue increased.
- Compared with the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared with the same quarter one year earlier, revenue was unchanged, while gross profit and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.2%
Gross profit
$4.5B
Revenue
$11.3B
Cost of revenue
$6.7B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-1.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 31, 2025 | $11.1B | $4.5B | $6.6B | 40.3% |
| Aug 31, 2025 | $11.7B | $4.9B | $6.8B | 42.2% |
| Nov 30, 2025 | $12.4B | $5.0B | $7.4B | 40.6% |
| Feb 28, 2026 | $11.3B | $4.5B | $6.7B | 40.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2025
-0.4 pts
Year-over-year change
Feb 28, 2025
-1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was primarily driven by the relationship between revenue and cost of revenue: sequentially, revenue fell while cost of revenue decreased by a smaller proportion; year-over-year, revenue was stable but cost of revenue increased.
Compared with the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared with the same quarter one year earlier, revenue was unchanged, while gross profit and gross margin were lower.
Monitor the trend in cost of revenue relative to revenue, as the recent pattern shows margin compression from a less favorable cost-to-revenue ratio.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| NIKE, Inc. (NKE) | 40.2% |